PENSIONS
SOLUTIONS
Vanguard Life Pension Fund Scheme (Tier 2)
Vanguard Life Provident Fund Scheme (Tier 3)
Vanguard Life Group/ Personal Pension Fund Scheme
(Informal)
United Pension Trustees Limited (UPT) is an
Independent Indigenous Ghanaian
Corporate Trustee Company Licensed By
The National Pensions Regulatory Authority
(NPRA)
EXECUTIVE SUMMARY:
NATIONAL PENSIONS REFORMS
7. Establishment of transitional
arrangement for both public
and private pension
6. Tier 2 benefits can be
assigned to secure a
mortgage towards primary
residence acquisition
1. A three-tier contributory
scheme, two mandatory
schemes and a voluntary
scheme
Key elements
of the
National Pensions
Reforms
5. Schemes have portability
features to enhance level
of benefits
2. Upward review of
contribution rates to 18.50%
for employers and employees
3. Pensions Regulator is
mandated to regulate public
and private pensions
4. New tax incentives on
contributions and benefits
The Pension Act was enacted to ensure a universal pension scheme for all
employees and informal sector workers.
2 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
EXECUTIVE SUMMARY:
NATIONAL PENSIONS REFORMS
NATIONAL PENSIONS REGULATORY AUTHORITY
First Tier: Mandatory Basic
National Social Security Scheme
SSNIT
(Board of Trustees)
Second Tier: Mandatory
Occupational Pension Schemes
Third Tier: Voluntary Pension
Schemes (Provident Funds; Informal
Sector Schemes; Personal Pensions)
Approved Trustees
(Licensed by the NPRA; Must appoint independent Fund Manager and Custodian)
FUND MANAGER
(Registered by NPRA;
Licensed by SEC; Independent
of Trustee and Custodian)
Formulate investment
strategies
Make investment advices
FUND CUSTODIAN
(Registered by NPRA;
Licensed by SEC; Independent
of Trustee and Fund Manager)
Safe keeping of assets
SCHEME ADMINISTRATOR
(May be appointed by
a Trustee; No
independence requirement)
Scheme administration
Record keeping
Pension reforms became operational on 1st January 2010 with a clear regulatory structure
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 3
Our proposed workflow is built on each
party having a clear understanding of
their role and responsibility
EXECUTIVE SUMMARY:
PROPOSED SERVICES TO BE PROVIDED
CORPORATE TRUSTEE
SERVICES AND SCHEME
ADMINISTRATION
FUND MANAGEMENT
‣ Provision of independent trustee representative
‣ Provision of secretarial services
‣ Appointment of fund managers and custodians
‣ Regular regulatory reporting and liaison with the regulator
‣ User data collation, maintenance and accuracy / integrity
preservation
‣ Contributions, redemptions, termination, resignation,
disability/death administration
‣ Draſting and executing Investment Policy Statement
‣ Executing Investment Management Agreement
‣ Utilise fund manager’s investment architecture and process disciplines
‣ Can define a range of constituent funds to suit demographics and / or
preferences of groups of scheme members
CUSTODIAL SERVICES
‣ Ensure safe-keeping of cash and securities assets
‣ Provide accurate and timely reports on all assets under
management
CONSULTING SERVICES
‣ Trust Deed Development
‣ Rules and Regulations Development
‣ Statement of Investment Policy Development
‣ Actuarial Services
‣ Trustee Training
SCHEME TO ADOPT
BEST PRACTICE
‣ By adopting best practice
from the Act, we propose that
the Fund implements
separation of duties in order to
achieve the best results;
‣ Corporate Trustee –
responsible for overall
management of the scheme
and for appointing service
providers;
‣ Fund Manager – responsible
for scheme investment
decisions, in accordance with
scheme rules.
‣ Custodian – responsible for
safe-keeping of scheme assets.
United Pension Trustees proposes providing all services as a bundled package,
in association with selected service providers
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 5
EXECUTIVE SUMMARY: PENSIONS
SOLUTIONS PROPOSAL
THE CLIENT (INSTITUTION)
‣ The implementation of the National Pensions Law, 2008 (Act 766) (the “Act”) from January 2010 has made specific
provisions for regulating the activities of existing and new provident funds and other voluntary welfare schemes;
GHANA
PENSIONS
REFORM
THE CLIENT
(INSTITUTION)
PENSIONS
(TIER 2 AND 3)
SOLUTION
‣ Companies must ensure that their existing or new schemes are in compliance with the New Pensions Law, 2008 (Act
766);
‣ A key provision in the Act is the requirement for separation of roles – Trustees, Fund Managers and Custodians – in the
management of all staff saving schemes.
‣ This Proposal provides compliance options for The Client (Institution) obligations under the mandatory Tier 2 Pension
Fund of the New Pensions Law, 2008
(Act 766).
‣ The Client (Institution) is currently considering how to transform its existing Provident Fund to be Tier 3 compliant or set
up a provident fund scheme which is tier 3 compliant under the New Pensions Law, 2008 (Act 766).
There are three options to attain compliance as listed below:
PENSIONS
SOLUTIONS
OPTIONS
‣ Employer Sponsored Schemes
‣ Master Trust Schemes
‣ Hybrid Schemes
6 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
EXECUTIVE SUMMARY: PENSIONS
SOLUTIONS PROPOSAL
THE CLIENT (INSTITUTION)
In this option The Client (Institution) Pension/Provident Fund would have to do the following:
EMPLOYER
SPONSORED
SCHEMES
‣ The members of the Board of Trustees of the The Client (Institution) would have to undergo some mandatory training
and be certified by the National Pensions Regulatory Authority (NPRA)
‣ The NPRA Certified Board of Trustees would appoint NPRA certified Fund Managers and Custodians to service the The
Client (Institution) Pension/Provident Fund.
‣ The NPRA Certified Board of Trustees would then register the The Client (Institution) Pension/Provident Fund with the
NPRA
‣ Master Trust (Umbrella) Schemes are established by NPRA registered Corporate Trustees, with their relative Fund
Managers and Custodians.
MASTER TRUST
SCHEMES
‣ The Client (Institution) can register its employees directly with a Master Trust (Umbrella) Scheme which is Compliant
with Act 766.
‣ In which case there is no need to establish or register the The Client (Institution) Pension/Provident Fund or its Board
of Trustees with the NPRA. There would be an internal Client (Institution) Committee that interacts with the Master
Trust (Umbrella) Scheme’s Board of Trustees
A Hybrid Scheme enables The Client (Institution) Pension/Provident Fund to be an autonomous Pension/Provident Fund
with its own Board of Trustees, but outsource the regulatory requirements to either a Corporate Trustee or a Master
Trust (Umbrella) Scheme.
HYBRID SCHEMES
OPTION 1:
The Client (Institution) Pension/Provident Fund Board of Trustees would execute a Corporate Trust Deed with an NPRA
Certified Corporate Trustee who would then register the The Client (Institution) Pension/Provident Fund (and its
appointed Fund Managers and Custodian) with the NPRA. The need for The Client (Institution) Pension/Provident Fund
Board of Trustees to be certified by the NPRA is then eliminated.
OPTION 2:
The Client (Institution) Pension/Provident Fund Board of Trustees would execute an Affiliation Trust Deed with an NPRA
registered Master Trust (Umbrella) Scheme, thus acquiring its NPRA compliance status. Consequently the need to
register The Client (Institution) Pension/Provident Fund, with its Board of Trustees, with the NPRA is eliminated.
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 7
EXECUTIVE SUMMARY:
EMPLOYER SPONSORED OPTION
The Client
(Institution)
-Employer
Scheme Rules
The Client (Institution)
Pension Fund – 2nd Tier
The Client (Institution)
Provident Fund – 3rd Tier
Scheme Rules
The Client
(Institution) Employees
Trust
Deed
Administrator
(In-house or
Out-sourced)
The Client
(Institution)
PF Board of
Trustees
Administration
Agreement
Licenses and
Approvals
National
Pensions
Regulatory
Authority
Investment
Management
Agreement
Investment Policy
Statement
Custody Services
Agreement
Custodians
There are a number of agreements required to be executed between all parties
8 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
Fund Managers
EXECUTIVE SUMMARY:
MASTER TRUST (UMBRELLA)
SCHEME OPTION
The Client
(Institution) Employer
Scheme Rules
Vanguard Life Pension Fund Scheme(Tier 2)
Vanguard Life Provident Fund Scheme (Tier 3)
Scheme Rules
The Client
(Institution) Employees
Trust
Deed
Investment
Management
Agreement
Investment Policy
Statement
United
Pension
Trustees
Ltd.
Administrator
(In-house)
Licenses and
Approvals
National
Pensions
Regulatory
Authority
Fund Managers
Custody Services
Agreement
Custodians
There are a number of agreements required to be executed between all parties
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 9
EXECUTIVE SUMMARY:
HYBRID OPTION
NPRA
United Pension
Trustees Ltd.
Licenses and
approvals
OPTION 1
Vanguard Life
Pension Fund
Scheme (Tier 2)
Corporate
Trust Deed
The Client
(Institution) PF
Trustees
VA Life Provident
Fund Scheme
(Tier 3)
Trust
Deed
Affiliation Deed
Affiliation Deed
The Client (Institution)
Pension Fund–2nd Tier
The Client (Institution)
Provident Fund–3rd Tier
Scheme
Rules
The Client (Institution)-Employer & Employees (Members)
There are a number of agreements required to be executed between all parties
10 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
OPTION 2
EXECUTIVE SUMMARY:
REGULATORY CONSIDERATIONS
‣ Employer Sponsored Schemes enables absolute control of the Pension/Provident Fund Schemes
ADVANTAGES
‣ Umbrella Master Trust Schemes are very easy to join and do not require establishment of Pension/Provident Fund
Schemes by the Employer.
‣ Hybrid Schemes enable autonomy and control of Pension/Provident Fund Schemes, whilst out-sourcing compliance
requirements
DISADVANTAGES
‣ Certification of Board of Trustees and Pension/Provident Fund Employer Sponsored Schemes are quite involving and
ensuring continued compliance with Act 766 requires significant resources.
‣ Employer has limited control on Master Trust (Umbrella) Schemes and cedes responsibility to the Corporate Trustee
RECOMMENDATIONS
‣ A Hybrid Scheme Option 2 is recommended as it very easy to implement as all that is required in the affiliation to the
master umbrella trust.
‣ Affiliation of The Client (Institution) Pension and Provident Fund Schemes to United Pension Fund and Vanguard Life
Provident Fund Schemes are the preferred option as it is relatively simple to implement.
The proposed solution would be in compliance with the New Pensions Law, 2008 (Act 766)
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 11
A SCHEMATIC DIAGRAM OF UPT’S
PENSION AND PROVIDENT FUNDS
TRUSTEESHIP AND ADMINISTRATION
SERVICE PACKAGE
MEMBERS
(Companies/Institutions
Pension/Provident Fund Schemes)
VA Life Pension Fund Scheme (Tier 2)
VA Life Provident Fund Scheme (Tier 3)
VA Life Group/ Personal
Pension Fund Scheme (Informal)
Corporate
Trustee
Appointed
CAL ASSET MANAGEMENT CO. LTD.
(A wholly-owned subsidiary of CAL Bank)
Fund Managers
‣ Fidelity Securities Ltd.
‣ SAS Investment Management Ltd.
‣ EDC Investments Ltd.
‣ Stanbic Investments Ltd.
‣ Frontline Capital Advisors Ltd.
‣ All-Time Capital Ltd.
‣ HFC Investments Services Limited
‣ New World Renaissance Ltd.
Fund Custodians
12 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
‣ Liberty Capital Ghana Ltd.
EXECUTIVE SUMMARY:
HIGH LEVEL PROCESS MAP
Appointment of
Trustees and
Corporate
Trustee
Execute Trust
Deed, Statement
of Investment
Principles, Rules
and Regulations
Invest monthly
contributions in
line with
Investment
Policy
Statement
Prepare and
distribute
regular reports
(electronic,
hardcopy or
online access)
Receive and
reconcile
monthly
contributions
and new
employee data
Administer
employee
actions
(termination,
resignation, etc)
Key:
Execute
Corporate/
Affiliation Deeds
Initial Employee
data collection
and set-up
Ensure
regulatory and
compliance
requirements are
met
One-off
Iterative
There are a number of high-level processes that must be strictly adhered to, in order to implement successfully
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 13
EXECUTIVE SUMMARY:
SUMMARY OF REPORTS
REPORTS
FREQUENCY
PARTY RESPONSIBLE
Client reports
‣ Scheme-wide holdings report
‣ Scheme-wide transactions report
‣ Individual transactions report
‣ Online individual account statement
‣ Monthly
‣ Monthly
‣ Monthly
‣ Always available
‣ Scheme administrator/Corporate Trustee
‣ Scheme administrator/Corporate Trustee
‣ Scheme administrator/Corporate Trustee
‣ Scheme administrator/Corporate Trustee
Regulatory reports
‣ Tier 2 contributions report
‣ Tier 3 contributions report
‣ Scheme Report
‣ Investment Report
‣ Trustees’ Returns
‣ Control Objectives of the Scheme
‣ Compliance with Capital Adequacy
‣ Monthly Returns
‣ Monthly
‣ Monthly
‣ Each Financial Period of the Scheme
‣ Each Financial Period of the Scheme
‣ Within 6 months aſter each Financial Year
‣ Before the deadline aſter Financial Period
‣ Within 6 months aſter each Financial Year
‣ 14 days aſter the last day or each calendar month
‣ Scheme administrator/Corporate Trustee
‣ Scheme administrator/Corporate Trustee
‣ Scheme administrator/Corporate Trustee
‣ Scheme administrator/Corporate Trustee
‣ Scheme administrator/Corporate Trustee
‣ Scheme administrator/Corporate Trustee
‣ Scheme administrator/Corporate Trustee
‣ Scheme administrator/Corporate Trustee
Internal reports
‣ Employee contributions data
‣ Employer contributions data
‣ Bank accounts statements
‣ Investment sale and purchase report
‣ Investment returns report
‣ Monthly
‣ Monthly
‣ Online / Daily
‣ Monthly
‣ Monthly
‣ The Client (Institution)
‣ The Client (Institution)
‣ Custodian
‣ Fund manager
‣ Fund manager
‣ Quarterly
‣ Independent Corporate Trustee / Scheme
Administrator
Process and service level reports
‣ All-party sign-off on process and SLA
compliance report template (shows each
process step, key responsibility and
compliance/under-performance of deliverable
Accurate and timely reporting is essential to maintain service delivery levels
14 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
SERVICE PROVISION,
PROCESSES AND REPORTING:
SCHEMATIC OF RESPONSIBILITIES
‣ Provide monthly
contribution data.
‣ Ensure all parties acting
in the best interests of
members at all times.
‣ Provide new
employee and
employee changes
data.
‣ Collect and reconcile
monthly data and fund
movements.
‣ Nominate members
to Board of Trustees.
Employer
United Pension
Trustees Ltd.
‣ Ensure all parties
performing in accordance
with SLA’s.
‣ Make monthly
contributions.
‣ Nominate
representatives to
Board of Trustees.
Employees
VA Life Pension Fund Scheme (Tier 2)
VA Life Provident Fund Scheme (Tier 3)
‣ Ensure safekeeping
of all assets.
Fund Manager
Custodian
‣ Provide regulatory
reporting.
‣ Provide licensing and
regulatory oversight.
‣ Appoint services
providers.
VA Life Group/ Personal Pension Fund
Scheme (Informal)
‣ Invest funds in
accordance with
Investment Management
Agreement.
‣ Provide investment
returns data to
Scheme Administrator.
‣ Produce client, regulatory,
internal and process
monitoring reports.
Regulator
(NPRA)
‣ Ensure bank and securities
account statements are
always available to Trustee
and Fund Manager.
‣ Provide regulatory
and client reporting.
Our proposed workflow is built on each party having a clear understanding of their role and responsibility
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 15
SERVICE PROVISION, PROCESSES AND
REPORTING: CLIENT REPORTS
24-hour Online Access
Company email report
Investor email report
‣ The interface allows online
log-on from anywhere, any
time
‣ Monthly overall portfolio
summary
‣ Detailed individual account
transactions
‣ Detailed overall portfolio
account transactions
‣ Individual’s portfolio
summary
‣ Unique log-in ID's for
clients and for each investor
‣ Underlying investment
performance (overall and by
sub-fund)
A range of reporting delivery channels is available
16 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
Printed periodic
statement
‣ Batch printing of detailed
statements by contributor,
by company, by scheme or
overall
‣ Integrated automated
process, based on
pre-programmed scheduler
SERVICE PROVISION,
PROCESSES AND REPORTING:
MINIMUM SERVICE STANDARDS
REPORTS
FREQUENCY
MINIMUM SERVICE STANDARD
Client reports
‣ Scheme-wide holdings report
‣ Scheme-wide transactions report
‣ Individual transactions report
‣ Online individual account statement
‣ Monthly
‣ Monthly
‣ Monthly
‣ Always available
100.0% accuracy for all reports
‣ On time at least 99.0% of the time
‣ On time at least 99.0% of the time
‣ On time at least 99.0% of the time
‣ On time at least 95.0% of the time
Regulatory reports
‣ Tier 2 contributions report
‣ Tier 3 contributions report
‣ Scheme Report
‣ Investment Report
‣ Trustees’ Returns
‣ Control Objectives of the Scheme
‣ Compliance with Capital Adequacy
‣ Monthly Returns
‣ Monthly
‣ Monthly
‣ Each Financial Period of the Scheme
‣ Each Financial Period of the Scheme
‣ Within 6 months aſter each Financial Year
‣ Before the deadline aſter Financial Period
‣ Within 6 months aſter each Financial Year
‣ 14 days aſter the last day or each calendar month
‣ 100.0% accuracy for all reports
‣ On time at least 99.0% of the time
‣ On time at least 99.0% of the time
‣ On time at least 99.0% of the time
‣ On time at least 99.0% of the time
‣ On time at least 99.0% of the time
‣ On time at least 99.0% of the time
‣ On time at least 99.0% of the time
Internal reports
‣ Employee contributions data
‣ Employer contributions data
‣ Bank accounts statements
‣ Investment sale and purchase report
‣ Investment returns report
‣ Monthly
‣ Monthly
‣ Online / Daily
‣ Monthly
‣ Monthly
100.0% accuracy (all errors reported within 48 hours)
‣ On or before the 3rd working day of each month (99.0 %)
‣ On or before the 3rd working day of each month (99.0 %)
‣ On time at least 99.9% of the time
‣ On time at least 99.0% of the time
‣ On time at least 99.0% of the time
Process and service level reports
‣ All-party sign-off on process and SLA
compliance report template (shows each
process step, key responsibility and
compliance/under-performance of deliverable
‣ Quarterly
‣ On or before the 5th working day of each quarter
(99.0%)
United Pension Trustees Limited shall ensure strict adherence to accuracy and timeliness standards
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 17
We use a clearly defined approach to
provide Corporate Trustee & Scheme
Administration Services to our clients
CORPORATE PROFILE
United Pension Trustees Limited (UPT) is an indigenous
Ghanaian company established to provide pension trustee
services to pension and provident funds operating under the
National Pensions Law, 2008 (Act 766).
VISION
To be a Leading Ghanaian Corporate Trustee in the Pension Industry.
‣ UPT is licensed by the National Pensions Regulatory Authority(NPRA) under the
National Pensions Law, 2008 (Act 766) as Corporate Trustee.
CORE VALUES
In pursuit of its mission, United Pension Trustees Limited will be guided by the
following principles and values which it regards as fundamental to its success:
‣ UPT is the Corporate Trustee of the Vanguard Life Pension Fund Scheme (Tier 2),
Vanguard Life Provident Fund Scheme (Tier 3) and Vanguard Life Group/ Personal
Pension Fund Scheme (Informal).
‣ It is UPT’s objective to build members’ retirement wealth by providing them with
pension services, products and value added benefits that prepare them for
retirement, delivered in a professional, efficient and friendly manner.
‣ UPT aims to ensure that all members of pension and provident funds, under its
trusteeship acquires a home over their working life, as part of their retirement
preparation.
MISSION
Building Retirement Wealth
Integrity - exercising “Utmost Good Faith” in all dealings with clients and
stakeholders;
Innovation - employing state-of-the-art Management Information Systems to
service clients promptly, enhance the ability to enforce compliance rules
effectively and generate reports quickly to facilitate the performance of administrative and control functions;
Family – treating clients and stakeholders as an extended family.
OUR TAG LINE
United We Build
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 19
UMBRELLA MASTER TRUST SCHEMES
VANGUARD LIFE PENSION FUND SCHEME
(TIER 2)
VANGUARD LIFE PROVIDENT FUND SCHEME
(TIER 3)
VANGUARD LIFE GROUP/ PERSONAL
PENSION FUND SCHEME (INFORMAL)
Vanguard Life Pension Fund Scheme is an
Umbrella Master Trust Pension Fund (Tier 2)
registered with the National Pensions
Regulatory Authority (NPRA).
Vanguard Life Provident Fund Scheme is an
Umbrella Master Trust Provident Fund Scheme
(Tier 3) registered with the National Pensions
Regulatory Authority (NPRA).
Vanguard Life Group/ Personal Pension Fund
Scheme (Informal) is an Umbrella Master Trust
Group Personal/ Personal Pension Fund Scheme
registered with the National Pensions
Regulatory Authority (NPRA).
‣ Vanguard Life Pension Fund Scheme is an
independent legal entity registered as a
company limited by Guarantee and owned by its
members.
‣ Vanguard Life Provident Fund Scheme is an
independent legal entity registered as a
company limited by Guarantee and owned by its
members.
‣ Vanguard Life Pension Fund Scheme members
enjoy the Tax Incentives under the National
Pensions Law, 2008 (Act 766).
‣ Vanguard Life Provident Fund Scheme
members enjoy the Tax Incentives under the
National Pensions Law, 2008 (Act 766).
20 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
‣ Vanguard Life Group/ Personal Pension Fund
Scheme is an independent legal entity registered
as a company limited by Guarantee and owned
by its members.
‣ Vanguard Life Group/ Personal Pension Fund
Scheme members enjoy the Tax Incentives under
the National Pensions Law, 2008 (Act 766).
UNITED PENSION TRUSTEES LIMITED
SERVICES TO THE CLIENT
(INSTITUTION) WILL CONSIST OF THE
FOLLOWING KEY SERVICE OFFERINGS:
CONSULTING SERVICES
‣ Trust Deed Development
‣ Rules and Regulation Development
‣ Statement of Investment Policy Development
‣ Actuarial Support for Benefit Design and Costing
‣ Trustee Training
CORPORATE TRUSTEESHIP SERVICES
‣ Provision of an Independent Trustee Representative on The Client (Institution)
Board of Trustees
‣ Provision of Secretarial Services to The Client (Institution) Board of Trustees
‣ Being registered with the NPRA as licensed Approved Corporate Trustee of
Vanguard Life Pension Fund (Tier 2), Vanguard Life PF Scheme (Tier 3) and
Vanguard Life Group Personal/ Informal Pension Fund Scheme (Tier 3)
‣‣ This in essence is the “hybrid solution” as The Client (Institution) Board of
Trustees comprising of The Client (Institution) appointed and member
nominated colleagues would internally direct the Fund’s affairs, whilst UPT
externally provides the various services and ensures compliance with the
Pensions Law
‣ Appointment of other legally required service providers being:
‣‣ The Fund Managers
‣‣ The Custodians
‣ Affiliation of The Client (Institution) Pension / Provident Fund with the Umbrella
Master Trust Scheme
SCHEME ADMINISTRATION
‣ Administration: Maintenance of individual employee records; Receipt and
recording of fund inflows; and Recoding and effecting of withdrawals and other
Board Of Trustees approved
requests
‣ Employee Reports: Annual Employee Statement of Account indicating
Account Balance, Credits to Account (contributions, Investment Returns), and
Debits to Account (fees, life assurance premiums)
‣ Bi-annual Trustees Provident Fund Status Reports: Fund Value, Assets
Held, Investment Returns, Contributions Received, Benefits Paid Out, Members
Joined / Exited
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 21
VALUE ADDED BENEFITS PROVIDED BY
UNITED PENSION TRUSTEES LIMITED
AS PART OF ITS SERVICE OFFERINGS.
HOMESURE BENEFIT
NKOSUO LOAN
‣ United Pension Trustees Limited originates a 10 – 20 year mortgage loan of
100% the target home price for the Employee, to acquire the home.
‣ Every scheme member can access Nkosuo loan for a duration up to 3 years at
competitive interest rate.
‣ Tier 2 is used to guarantee a mortgage (home) loan for members
‣ Tier 3 is used to accumulate funds to pay off the mortgage loan principal
‣ Employee pays interest only on the home loan secured plus life assurance and
property insurance premiums over the term of the loan
‣ At the end of the Loan Term, proceeds from the accumulated contributions
from your provident fund
(Tier 3) contributions and investment yields would be used to payoff the home
loan as a lump sum.
GROUP LIFE ASSURANCE BENEFIT
‣ Free life assurance cover of GHS1000.00.
‣ Provision of life assurance and disability cover of up to five(5) times annual
salary.
‣ Funeral Assurance Cover extended to family members.
22 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
KWIKADVANCE
‣ KwikAdvance is a one month loan facility disbursed to scheme members
(employees) who have signed on the pension and provident fund scheme in the
form of a salary advance.
‣ This facility seeks to grant financial assistance to beneficiaries who may need
immediate funds to transact business or take care of an emergency at their
own convenience through the use of Mobile Money Wallet.
INTEGRITY
INNOVATION
FAMILY
HOW HOMESURE BENEFIT WORKS
‣ United Pension Trustees Limited originates a 10 – 20 year mortgage loan of
100% the target home price for the members, to acquire the home.
‣ Member’s tier 2 serves as a guaranteed for the value of the mortgage (home)
loan.
‣ At the end of the Loan Term, proceeds from the accumulated contributions
from your provident fund
(Tier 3) contributions and investment yields would be used to pay-off the home
loan as a lump sum.
‣ Unscheduled payments are allowed.
‣ Member’s Tier 3 is used to accumulate funds to pay off the mortgage loan
principal.
‣ Members pays interest only on the home loan secured plus life assurance and
property insurance premiums over the term of the loan.
‣ Members should have accumulated fund value for his Tier 3 at least 15% - 25%
of the target mortgage (home) loan.
HOMESURE BENEFIT – CENTRAL ESTATES
24 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
‣ To determine your affordability of the HOMESURE BENEFIT, a forecast of the
member’s provident fund value contributions at the end of the mortgage loan is
done to ensure that the member’s accumulated value on this/her provident fund
contributions are enough to pay the loan principal off.
THE CLIENT (INSTITUTION)
PENSION/PROVIDENT FUND SCHEMES
ESTABLISHMENT PROJECT
EXECUTION PLAN
The following methodology and strategy would be adopted for the establishment and management
of The Client (Institution) Pension/Provident Fund Schemes.
Project Team
Strategic Action Plan
A Project Team comprising
of representatives of The
Client (Institution) and
UNITED PENSION
TRUSTEES LIMITED would
be responsible for the
entire execution of the
project
A Strategic Action Plan specifically detailing the
activities to be executed, time frames within which
they should be executed, resources required for the
execution of the activities and deliverables expected
from the specific activities. This Strategic Action Plan
would be the control tool for the entire project and
the logical conclusion of its execution would be the
establishment of the The Client (Institution) PF
PROJECT INITIATION
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 25
UNITED PENSION FUND (TIER 2) AND
VANGUARD LIFE PROVIDENT FUND
SCHEME (TIER 3) ARE REGISTERED
SCHEMES WITH THE NPRA
United Pension Trustees Limited has successfully registered
Vanguard Life Pension Fund Scheme (Tier 2), Vanguard Life Provident
Fund Scheme (Tier 3) & Vanguard Life Group/ Personal Pension Fund
Scheme (Informal) with the National Pension Regulatory Authority.
United Pension Trustees Limited has a professional management team comprising of
actuaries, chartered insurers, chartered accountants and certified information and
communication technology (ICT) specialists, with the necessary skills and experience
to service pension and provident fund schemes.
United Pension Trustees Limited has a robust, tested ICT platform with the
needed policies and procedures in place, to support the provision of timely
and accurate information on the operations and performance of pension and
provident fund schemes to the relevant stakeholders
United Pension Trustees Limited is the market leader in the provision of
occupational pension schemes, provident fund schemes and group/ personal
pension fund schemes management to corporate entities.
26 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
SUMMARY OF CORPORATE CLIENTS OF
VANGUARD LIFE PENSION FUND SCHEME (TIER 2) &
VANGUARD LIFE PROVIDENT FUND SCHEMES (TIER 3)
CLIENT/COMPANY
ACCRA BREWERY LIMITED
AFKO FISHERIES
AKOSOMBO TEXTILE LTD.
ALPHA CONSULT
ANTRAK AIR GHANA LIMITED
AMANANO RURAL BANK LTD.
AVERY GHANA LIMITED
AUTOMOTIVE SPRING
BARCLAYS BANK GHANA
BARRY CALLEBAUT GHANA
CCTC/FINATRADE
CEPA CEDI PROJECT FUND
CHASE PETROLEUM GHANA LIMITED
CHRISNAT LIMITED
CLUB PRICE / FINATRADE
COLD TEMPERATURES
CTD TEXTILES LTD.
CUSTOMS, EXCISE AND PREVENTIVE SERVICES (CEPS)
DAVENPORT DEVELOPMENT LTD.
DEHANS
DELOITTE & TOUCHE
DIVINE HEALERS CHURCH PENSIONS
DRY FOODS/FINATRADE
DV FASHION
CLIENT/COMPANY
ELWA GHANA LIMITED
FAMILY HEALTH INTERNATIONAL
FINATRADE FOUNDATION
FINATRADE SA. GH.
FORDIA WEST
FEIGHT LINKS/FINATRADE
G4S AFRICA(GHANA)
GAME DISCOUNT WORLD LTD.
G-L FISHERIES LTD.
GRAPHIC COMMUNICATIONS GROUP
IES ENERGY SERVICES LTD.
INSTITUTE OF PROFESSIONAL STUDIES
ISOPANEL
JOBESH LTD
L'OREAL WEST AFRICA
LUFTHANSA GERMAN AIRLINES
MARINE & GENERAL BROKERS
MARKET DIRECT LTD.
MIKLIN HOTEL
MILLICOM GHANA LIMITED (TIGO GHANA)
MOVIE HOUSE PLAZA
MR BIGGS
EDWARD & SNELL COM. AFRICA
NKOSUO FINANCE LIMITED
NATIONWIDE MUTUAL HEALTHCARE
NKORANZA KWABRE RURAL BANK
CLIENT/COMPANY
NOSTRA KLINIK
OTUASEKAN RURAL BANK
PACIFIC INTERNATIONAL LIMITED GHANA (PIL GHANA)
PANOS SECURITY SERVICES
PREMIER MUTUAL HEALTH
RAKES ALITALIA
RAKES ERICSSON
RAKES GHANA
RAKES PROTEIN
SEKYEREDUMASE RURAL BANK
SCG PAYROLL SOLUTIONS
SITOS GHANA LTD.
SPEEDLINE STEVEDORING
STRATCOM AFRICA LIMITED
SUBSTANCE MARKETING LTD.
SUCATRADE/FINATRADE
TAKORADI GAS LIMITED
TEMA OIL REFINERY
TRUST ALLIED FISHING VENTURES LIMITED
TYPE CO. LTD
VANGUARD GROUP
VOLTIC GHANA LTD
WEST COAST BEVERAGE LTD
WEST COAST BEVERAGE LTD
ZTE
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 27
united we build
BOARD OF TRUSTEES OF VANGUARD LIFE PENSION FUND SCHEME (TIER 2)
& VANGUARD LIFE PROVIDENT FUND SCHEME (TIER 3)
HAROLD QUARSHIE AWUAH–DARKO
PHILIP JUDE MENSAH (LAWYER)
‣ Vice Chairman
‣ Chairman - Ghana Revenue
Authority (Customs) Provident Fund
‣ Legal Practitioner & AGOA
Specialist
‣ Master of Philosophy, Development
Studies ,Univ. of Cape Coast, (subject
area- Intellectual Property)
‣ Barrister at Law (Ghana Sch. of Law)
‣ LLB (Hons) University of Ghana
‣ Over 20 years in the Customs and
AGOA activities
‣ Chairman
‣ Vice Chairman - Vanguard Life Assurance Co.
‣ Chairman – Nationwide Mutual Healthcare
‣ Actuarial Scientist
‣ MSc. Actuarial Science - City University, London,
UK
‣ BSc. (Hons) in Statistics and Computer Science –
University of Ghana, Legon
‣ Over 20 years experience in the insurance
industry
AKATURE ANIA
SETH OBIRI
‣ Trustee
‣ Former COO, Vanguard Life Assurance Co. Ltd.
‣ Chartered Insurer
‣ Associate, Chartered Insurance Institute (ACII)
‣ MBA Finance – Univ. of Leicester, UK
‣ BSc. (Hons) in Biological Sciences – Kwame
Nkrumah Univ. of Sci. & Tech.
‣ 12 years experience in the insurance industry
‣ Trustee
‣ HR Director, Accra Brewery Limited
‣ Chairman, ABL Staff Provident Fund
‣ Master of Public Administration University of Ghana, Legon
‣ B. A. in Social Work & Sociology –
Univ. of Ghana, Legon
‣ Over
15 years experience in
Administration & HR Management
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 29
BOARD OF TRUSTEES OF VANGUARD LIFE PENSION FUND SCHEME (TIER 2)
& VANGUARD LIFE PROVIDENT FUND SCHEME (TIER 3)
EBENEZER AIDOO
SELASSIE AMEKO
‣ Trustee
‣ CFO, Akosombo Textiles Limited (ATL)
‣ Chairman - ATL Staff Provident Fund
‣ Qualified Management Accountant (Chartered
Institute of Management Accountants)
‣ BSc. (Hons) in Agriculture – Univ. of Ghana,
Legon
‣ Experience in Cost /Management Accounting
and Auditing
‣ Over 20 years experience in the Finance and
Agricultural industries
MRS. ANNETTA ANIN
‣ Trustee
‣ HR Director, Barry Callebaut Ghana
‣ An Expert Human Resource Management
‣ Post-graduate Diploma in Human Resource
Management
‣ B.A (Hons) University of Ghana
‣ Human Resource Practitioner
30 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
‣ Independent Trustee
‣ Ghana Federation of Labour
‣ A qualified Labour Expert
‣ Diploma in Labour Relations – University of Cape
Coast (UCC)
‣ Diploma in HR Management - Strategic
Development International & Industrial Relations
‣ Certificate in Business Admin., Project
Management & Industrial Relations
‣ Over 10 years experience in Labour and
Management Consultation
CORPORATE LEGAL CONCEPTS
‣ Corporate Secretary
MANAGEMENT TEAM OF UNITED PENSION TRUSTEES LIMITED
ISAAC SENIOR DAMPTEY, ACIA, ASA
SETH OBIRI
‣ Managing Director
‣ Former COO, Vanguard Life Assurance
Co. Ltd.
‣ Chartered Insurer
Associate, Chartered Insurance Institute
(ACII)
‣ MBA Finance – Univ. of Leicester, UK
‣ BSc. (Hons) in Biological Sciences –
Kwame Nkrumah Univ. of Sci. & Tech.
‣ 12 years experience in the insurance
industry
GEORGE ADJEI GYASI
‣ Compliance Officer
‣ Professional Lawyer
‣ Barrister at Law – Ghana School of Law
‣ Associate, Chartered Institute of
Personnel & Development
‣ MBA in Human Resource Management –
University of Ghana, Legon
‣ BA (Hons) in Sociology – University of
Ghana, Legon
‣ Over 20 years experience in Administration & Human Resource Management.
‣ Actuary – Head of Operations & Systems
‣ Qualified Professional Actuary
‣ Associate, Society of Actuaries – U.S .A.
‣ Actuarial Associate, Canadian Institute of
Actuaries - Canada
‣ B.A (Hons) in Statistics & Mathematics from
University of Ghana, Legon.
‣ Over 5 years actuarial experience in
insurance and pension industry.
MICHAEL ARTHUR-BADOO
‣ Finance Manager
‣ Member, IT Governance Professional (ISACA)
–U.S.A
‣ Association of Certified Chartered Accountants (Part 2 Completed) – U.K
‣ MBA(Finance Option) – Central University
College, Accra
‣ BSc. (Hons) in Business Administration –
Central University College, Accra
‣ Over 15 years experience in Finance
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 31
Our approach to investment is
methodical and rooted in our mission of
Building Retirement Wealth
A CLEARLY DEFINED APPROACH TO
PROVIDE FUND MANAGEMENT
SERVICES TO OUR CLIENTS
Good returns with a low
risk investment profile
‣ Provident funds are
invested exclusively in
medium to long-term assets
Clear Scheme Rules
‣ Scheme rules are devised
in consultation with
management and staff
‣ Ability to create and utilise
multiple sub-funds
Robust fund
administration
Frequent and automated
reporting
‣ Clearly-defined process
workflow from Day 1, with
timelines and
responsibilities
‣ Automated monthly
reports (both per contributor
and overall)
‣ Segregated fund accounts
with the option of joint
mandates
Low cost structure
‣ Maximum cap yet to be
determined by the regulatory
authority
‣ No other/hidden charges
‣ Online access for
contributors to view
statements at any time
The wealth of fund management expertise and award-winning technology platform are a potent
A range
of reporting
delivery channels
is available
combination for
delivering
simple, process-based
provident
fund management.
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 33
THE APPROACH IS METHODICAL AND
ROOTED IN OUR MISSION OF
“BUILDING RETIREMENT WEALTH”
5a
Select from
available
universe of
investment
instruments
1
2a
3
4
Assess
demographics
and objectives of
underlying client
Apply regulatory
and legal
constraints
Determine
appropriate mix
of investment
styles/products
that will meet
the client’s
investment
objectives
All investment
decisions driven
by bottom-up
fundamental
research
5b
Investment committee
continuously monitors
exposures, risks and
macro-economic factors
2b
Confirm
investment
policy statement
and restrictions
6a
Continuous feedback loop (from “6a” and “6b”) ensures
that investments and exposures always meet
client/fund’s objectives
Apply stop loss
strategies on all
positions
Our investment philosophy and process are executed by a team of highly qualified and rigorously
vetted professional in addition to well honed corporate checks and balances
34 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
6b
Continuously check that
risk-adjusted returns of
each portfolio matches
underlying client
expectations
INVESTMENT STYLES ARE TARGETED AT
ACHIEVING THE BROAD OBJECTIVES OF
SECURITY, INCOME OR GROWTH…
Style
Short-term /
Low Risk
Long-term /
High Risk
Call Deposits
Corporate
Bonds
Domestic
Equities
X
X
Capital Growth
X
X
Aggressive Growth
X
X
Short Term Cash
X
Government
Securities
Global
Equities
Real Estate
Other
Securities
Life
Assurance
X
100% Treasury
X
Regular Income
X
X
X
X
X
X
X
X
A number of well-tested and licensed investment vehicles that act as benchmarks for its entire product
offering and match the optimum mix of assets and risk/ reward expectations.
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 35
… BY INVESTING IN INSTRUMENTS
THAT CONSISTENTLY DELIVER SUPERIOR RETURNS ON A RISK ADJUSTED
BASIS
CONSISTENT RETURNS
PORTFOLIO SPACE
LOW-MEDIUM RISK
PROFILE
‣ Government bonds
‣ Treasury bills
‣ Corporate bonds /
Commercial
‣ Bank fixed deposits
‣ Equities
‣ Open and Close-end
funds
‣ Real Estate
‣ Private Equity
‣ Foreign currency bonds
‣ Cash (local & foreign
currency)
‣ Life Assurance
MEDIUM-LONG TERM
NATURE
The investment style would conform with scheme’s investment policy statement
and investment guidelines issued by the National Pensions Regulatory Authority
36 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
OUR RISK MANAGEMENT AND
COMPLIANCE PROCEDURES ARE ROBUST,
COMMENCE RIGHT AT INCEPTION AND ARE
CONSISTENTLY APPLIED
SCHEME RULES FORMULATION
Investment bands set in consultation with the
Trustees
Restricted by regulations issued by the NPRA
SEPARATION OF ROLES
Investment portfolio instructions are routed
through trustees to custodian – full disclosure
Assets held with custodian; investment manager
just advices on underlying investments
REGULAR REPORTING
Online and monthly scheduled emails also provide
full transparency to underlying investors
Regular reports detailing underlying investment
portfolio available to trustees
COMPLIANCE MONITORING
Dedicated in-house legal & compliance team is an
integral part of operational process
Constantly monitors all investment decisions and
positions and immediately flags any breaches
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 37
FEES AND COSTS:
OVERALL FEE STRUCTURE
Fees/Charges
NPRA Proposed*
Trustee fees
Administration fee
1.33%
N/A
Fund management fee
0.56%
Custodian fee
0.28%
NPRA Fee
0.33%
Overall fee
2.50%
*Source: NPRA draſt guidelines
Note: all fees stated as a percentage of Funds under
Management per annum
Given the anticipated size of the fund, we propose a very competitive and negotiable fee structure
38 ‣ Pensions Solution (Tier 2 and Tier 3 Pension Schemes)
DISCLAIMER
‣ United Pension Trustees Limited (UPT) is established in compliance with the
National Pension Law, 2008 (Act 766). UPT has obtained license as a Corporate
Trustee from the National Pension Regulatory Authority of Ghana (NPRA).
‣ Vanguard Life Pension Fund Scheme- Tier 2, Vanguard Life Provident Fund
Scheme - Tier 3 and Vanguard Life Group/ Personal Pension Fund Scheme
(Informal) are Umbrella Master Trust Occupational Pension, Provident Fund and
Group/ Personal Pension Fund Schemes respectively registered with the
National Pensions Regulatory Authority (NPRA).
‣ Vanguard Life Assurance Company Limited (“VA Life”) is a wholly owned
subsidiary of Vanguard Assurance Company Limited, established in compliance
with the Insurance Law, 2006 [Act 724]. VA life is licensed and regulated by the
National Insurance Commission of Ghana.
‣ This document is for the purpose of marketing the services of United Pension
Trustees Limited, Vanguard Life Pension Fund Scheme, Vanguard Life Provident
Fund Scheme and Vanguard Life Group/ Personal Pension Fund Scheme and is
not intended as an offer or solicitation with respect to the purchase of any
service mentioned or described herein. Descriptions are not intended to be
complete, therefore United Pension Trustees Limited, Vanguard Life Pension
Fund Scheme, Vanguard Life Provident Fund Scheme or Vanguard Life Group/
Personal Pension Fund Scheme do not assume any legal liability or
responsibility. Neither the management, nor United Pension Trustees Limited,
Vanguard Life Pension Fund Scheme, Vanguard Life Provident Fund Scheme or
Vanguard Life Group/ Personal Pension Fund Scheme, nor any of United Pension
Trustees Limited or Vanguard Life Pension Fund Scheme or Vanguard Life
Provident Fund Scheme or Vanguard Life Group/ Personal Pension Fund Scheme
representatives or their respective advisers, nor any of United Pension Trustees
Limited or Vanguard Life Pension Fund Scheme or Vanguard Life Provident Fund
Scheme or Vanguard Life Group/ Personal Pension Fund Scheme or their agents,
officers or employees accept responsibility or liability for, or make any
representation, statement or expression of opinion or warranty, express or
implied, with respect to the accuracy or completeness of the information or any
oral communication in connection therewith unless, and save, to the extent that
such representation, statement or expression of opinion or warranty is expressly
incorporated into any legally binding contract executed by third parties, United
Pension Trustees Limited, Vanguard Life Pension Fund Scheme, Vanguard Life
Provident Fund Scheme and Vanguard Life Group/ Personal Pension Fund
Scheme.
‣ This document is for use by prospective client of United Pension Trustees
Limited and/or Vanguard Life Pension Fund Scheme and/or Vanguard Life
Provident Fund Scheme and/or Vanguard Life Group/ Personal Pension Fund
Scheme. This marketing material does not constitute an offer by, or on behalf of
United Pension Trustees Limited or Vanguard Life Pension Fund Scheme or
Vanguard Life Provident Fund Scheme or Vanguard Life Group/ Personal Pension
Fund Scheme to enter into any transaction with you and will not form the basis
of a contract for any such transactions.
‣ All information provided in this document is confidential and forms intellectual
property of United Pension Trustees Limited, Vanguard Life Pension Fund
Scheme, Vanguard Life Provident Fund Scheme and Vanguard Life Group/
Personal Pension Fund Scheme. By reading this document you agree to maintain
the confidential information in strict confidence and you also agree: not to
divulge any of the confidential information to any third party without United
Pension Trustees Limited’s, Vanguard Life Pension Fund Scheme’s, Vanguard
Life Provident Fund Scheme’s and Vanguard Life Group/ Personal Pension Fund
Scheme’s prior written consent; not to make use of the confidential information;
to restrict access to the confidential information to your employees or
professional advisers who need to have such access for the purposes of entering
into business relations with United Pension Trustees Limited, Vanguard Life
Pension Fund Scheme, Vanguard Life Provident Fund Scheme and Vanguard Life
Group/ Personal Pension Fund Scheme and you will impose upon such persons
obligations of confidentiality equivalent to those contained in this document. You
acknowledge United Pension Trustees Limited’s, Vanguard Life Pension Fund
Scheme’s, Vanguard Life Provident Fund Scheme’s and Vanguard Life Group/
Personal Pension Fund Scheme’s proprietary rights in the confidential
information and the disclosure of the confidential information shall not confer
upon you any rights whatsoever in respect of any part thereof except for the
purposes mentioned in this document.
Pensions Solution (Tier 2 and Tier 3 Pension Schemes) ‣ 39
For Further information, please don’t
hesitate to contact us at the address below:
United Pension Trustees Limited
Premium Place
No. 25 Ringway, Osu Avenue,
PMB 108, Airport
Accra, Ghana
Tel: +233-(0)302-251101/02/10
Mobile: +233-(0)243-680062/(0)544-339786
Fax: +233-(0)302-251106
E-mail: info@unitedpensiontrustees.com;
isaac.damptey@unitedpensiontrustees.com